• Cherie Barber
• May 21, 2019
• 1 Comment

Election result restores certainty for investors

With the election now over and Labor’s loss relegating its controversial property tax changes to the scrap heap, there’s a collective sigh of relief from property investors in Australia.

It means negative gearing remains intact and there’ll be no changes to the current capital gains tax laws. Thankfully, certainty has now been restored, and investors can go back to a “business as usual” approach as they capitalise on weakening house prices, interest rates at a 50-year low, and rich pickings for the astute buyer.

New incentives for first home buyers

For first home buyers, the return of the Coalition has delivered a welcome windfall at a time when affordability is a major barrier to home ownership, especially for younger buyers.

Under the First Home Loan Deposit Scheme, the Liberal government will allow first home buyers to purchase property with a 5 per cent deposit, which is GOLD! This means some lenders will provide loans on a 95 per cent loan-to-value mortgages. The First Home Loan Deposit Scheme will partner with private lenders and prioritise smaller lenders in a bid to boost competition.

 APRA indicates relaxing of lending rules

And there’s more good news released just today! The Australian Prudential Regulation Authority (APRA) has signalled it wants to wind back the ultra-conservative lending criteria it introduced at the height of the boom, meaning people will be able to borrow more money in the future. “In APRA’s view, the expectations introduced in 2014 have served an important purpose by limiting excessive borrowing in an environment of low interest rates and high household debt,” a statement from APRA says. “However, changes in the market and economic environment since that time have caused APRA to review the appropriateness of the current guidance.” You can read about the new proposed changes here.

NOW is always the right time to buy, as long as you do all your due diligence and purchase smartly.

Now is the time for action!

All of these factors point to one obvious conclusion: after months of uncertainty, buyers will now be mobilised to act, especially investors who have been delaying any purchase decision until after the election result.

While no one can predict which way prices will go in the near future, especially in post-boom cities like Sydney and Melbourne, I can only emphasise what I know from three decades of experience, buying in every single phase of the property cycle: NOW is always the right time to buy, as long as you do all your due diligence and purchase smartly.

Exactly the same rules apply in every property market: hot, soft or waning. You can read my blog here on why you need to ignore the property cycle and take action now, while others are sitting back waiting for the next gold rush. It’s not about timing the market, it’s about time in the market.

As of next week, I go back on a national tour for my last time in 2019. Click here to secure your seat at my free 3.5 Hour Property Masterclass where you can learn the highly lucrative strategies of Cosmetic Renovations & Airbnb for the current market.